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USD/JPY rises near 154 after US PPI boosts the dollar
US PPI came in hotter than expected, and Fed-rate hike odds in September jumped to nearly 70% from about 61% before the data, lifting USD/JPY to around 154.15.
USD/JPY rose to around 154.15 on Thursday, up about 0.40% on the day, as the US dollar rebounded on firmer inflation and labor-market signals, according to FXStreet.
The US Producer Price Index increased 5.4% year over year in August, above the 5.3% expected pace, while core PPI matched expectations at 4.6% year over year. On a monthly basis, headline PPI rose 0.4% and the core index added 0.2%.
Jobless claims also supported the view of a relatively resilient labor market, with initial claims falling to 206K for the week ending September 5 and continuing claims edging down to 1.774M.
FXStreet said the data strengthened expectations for a Federal Reserve rate increase in September, with CME FedWatch pricing nearly a 70% chance, up from about 61% before release. The outlet added that attention now turns to Friday’s US CPI, which could further sway dollar strength and USD/JPY.
Latest closeUSD/JPY 157.84 ▼0.3%